buglerbilly
11-06-10, 02:21 AM
Interview with Muharrem Dortkasli, President & CEO of Turkey’s TAI
TAI significantly supports the work on the centre fuselage of the F-35
With a significant increase of sales in 2009 and exports totalling some $175 million, the TAI strengthened its position among giant aerospace and defence companies and underlined its role as a team player for the design and development of defence programmes on a global scale. This is further emphasised by its contributions to the A400M military transport aircraft programme as well as the Joint Strike Fighter (JSF) programme. Furthermore, its R&D capabilities have brought forwards sound technology in the field for indigenously designed, developed and manufactures unmanned aerial vehicles (UAVs).
In light of these achievements, TAI’s CEO and President Mr Muharrem Dortkasli talked to Defence Turkey (DT), a media partner of defpro.com, to assess international activities and strategies as well as the status of ongoing programmes.
Part 2 of the interview will be published on Friday, 11 June 2010 at defpro.com.
DT: TAI has made significant achievements in 2009. Could you evaluate the improvements in the fields of production, investment and R&D activities in figures? What are TAI’s aims for 2010?
Dortkasli: First of all, the performance, not only of TAI but the whole SASAD Community [Turkey’s defence industry manufacturers association – Ed.] was very good in 2009 and this increase will continue for some more years. We at TAI have also accomplished our aims in 2009 in line with our strategies. The result of important measures to further improve the company’s position and performance are manifest in the total sales and export figures. The achievements of 2009, logging sales worth $370 million, reflect an increase of 60% compared to the sales volume recorded in the previous year. The exports reached a total of $175 million in 2009 supporting the stable development of the company. Despite a very challenging environment in 2010, further significant volume growth of over another 60% is expected in total sales, which is primarily due to strong contribution of excellent institutional performance and deliveries.
If we look at the investments, apart from the investments during the years of the establishment, TAI has entered a significant investment scheme during the past couple of years, which started with the A400M programme and continued in connection with the programmes in which we are acting as prime contractor. The investment efforts gained important momentum with the JSF/F-35 programme, in which TAI has become the second source of supply for the centre fuselage. While our investments scored $27 million at the end of 2009, an additional investment of over $100 million is planned to be made in 2010. We are maintaining our investments in technology, capital equipment and the infrastructure to strengthen our competitive position in global markets. With the completion of on-going investments at the Akinci facility, at the end of Q4 in 2010, the total working area under roof will reach approximately 260,000m2. Moreover, by the end of 2010, we are expecting that the employment will reach about 3,600 people, 1,500 of whom will be engineers.
The 2010-2014 period is important for us in the sense that, while the indigenous products and the solutions that are developed by TAI in the fields of trainer & transport aircraft, helicopters, UAVs and the satellites will be part of the Turkish Armed Forces inventory, at the same time we will be seeking strong presence in the global market for these products and services by the method of direct sales or through international cooperation. Therefore, this is going to be a breakthrough period for TAI.
On the other hand, I would like to reiterate our commitment to meet the programme schedules and performances as specific targets for 2010. This includes, but is not limited to the delivery of the fourth and last S70 BlackHawk helicopter under the Yarasa programme, the delivery of the first upgraded T-38 Jet Trainer, successful performance of the first flight of TIHA, test and readiness of the first upgraded C-130 and many others. In line with our stable development efforts, we will continue to pursue the opportunities to become a design and manufacturing partner in new product development projects in the field of world commercial aviation industries.
DT: How do you evaluate the export activities of TAI in 2009? What are your 2010 targets in this area?
Dortkasli: The volume of export of TAI has reached $175 million in 2009. However, it is expected that the exports will significantly increase within a couple of years with the potential sale of our indigenously developed products to allied countries. Also, the commencement of the delivery of JSF/F-35 centre fuselage and other components, the serial production of A400M structures and delivery of the aircraft to the customers will feed the export capacity in the short-term with the following 20 to 25 years life span.
By 2023, we are aiming to have an annual sales volume of $2 billion, half of which is generated through export revenues. It is imperative to present our capabilities and our products in the international market with the Turkish Armed Forces as a valuable reference. Being the leader in the aerospace sector in Turkey, TAI experienced important growth dynamics, leading the company to the prime role in meeting the Turkish Armed Forces’ modernisation requirements with indigenous solutions, in addition to the key partner role for increasing business opportunities in the international aerospace market. The development is based on adding increasing value in the programmes involving intensive engineering and focusing on critical systems solutions. Our indigenous products such as the HÜRKUS trainer, the Turkish Unmanned Aerial Vehicle as well as tailored solutions for the S70 BlackHawk, C-130 and T-38 platforms are among the examples of this challenge. Another key project is the Turkish Attack Helicopter (ATAK) programme, for which TAI is prime contractor. We see great potential for international cooperation as well as exports in connection with these projects.
Last but not least, TAI is actively pursuing new business opportunities in the field of civil/commercial aviation. With the historical record compliance of cost-quality-timely delivery parameters, TAI’s commercial export volume is targeted to be significantly increased before the end of 2010.
DT: What are your marketing and export plans for international platforms? Could you also outline priorities as well as strategies concerning joint production and joint R&D?
Dortkasli: We strongly believe that TAI’s participation in international aerospace projects will increase the value, the overall sales and the export potential for such projects. There are very good examples of our contributions to military and civilian projects such as the A400M, JSF/F-35, A350 XWB and B787. In line with our strategies, we may participate in new international military and commercial aerospace projects in the future as a partner where conditions warrant that a meaningful work share can be allocated to TAI in terms of design and manufacturing. On the other hand, considering the current status of the development and implementation process, TAI will also be open to discuss international partnerships in most of our programmes. While some of the products and integrated solutions of TAI are on the market now, others will be available in full spectrum in a few years. Consequently, it is our aim to become a key player with these products and solutions, together with new derivatives on the global market. At this stage, we are exploring the working models together with allied countries in the early phase as “joint development partner” to adopt and harmonise their requirements with those of the Turkish Armed Forces, which have a well-respected battlefield operational excellence. Moreover, this approach will help those partners to extend their capability base and to secure the lower costs of ownership through the life-cycle operation of such complex systems.
There will be significant export and partnering opportunities for our products such as the TIHA-UAV and the T-129 ATAK helicopter as well as the modernisation programmes in which TAI is playing an important role. However, TAI will closely work together with the Turkish Ministry of National Defence (MoND) and other authorities involved in obtaining necessary approvals and licenses if and when required.
DT: What are TAI’s activities in the modernisation project of F-16 aircraft of the Pakistani Air Forces and the F-16s for the Royal Jordan Air Force (RJAF) and what is the current status of these projetcs?
Dortkasli: Being the second largest F-16 manufacturer in the world (with 250+ deliveries) following Lockheed Martin, TAI has a very good reputation around the world due to its F-16 expertise and quality. Furthermore, completed and ongoing structural/avionics upgrades for Turkish and Jordanian Air Force F-16s make TAI a very capable and competitive company for modification programmes. Our customers are very satisfied with our timely deliveries, flight testing and technical training packages.
Due to these achievements and its quality and competitive pricing, TAI is currently being invited to several F-16 upgrade tenders around the world and, like in the case of Pakistani Air Force, has won the competition. We are very closely following global F-16 upgrade market, and it would not be surprising if we will see more of this type of contract awarding in the future.
DT: TAI is an important supplier for the JSF/F-35 aircraft programme. Could you please inform us about the progress of your activities within this programme?
Dortkasli: TAI is spending every effort in order to maximise the work share within the JSF/F-35 programme. JSF is one of the most challenging military programmes in the world. Becoming a contributor to this programme requires significant efforts. These efforts cover enhancing existing technical capabilities and also require significant investment. This is what we are doing today. We started our activities in the programme in 2005 and they are ramping up every day. On the technical side, TAI has improved its composite manufacturing technology to meet the programme requirements and some of the most sophisticated composite components of the aircraft are now being manufactured at our facilities. The components we manufacture are not only for Turkish aircraft but are used for the production of the global F-35 fleet. We have been delivering miscellaneous parts and components since last year and the delivery rate will continue to increase over the years.
TAI plans to reach 4 to 4.5 billion US Dollars of sales within the scope of the JSF/F-35 programme which will continue through 2034.
DT: Could you please elaborate on the company’s activities in the A400M programme?
Dortkasli: As you know, the A400M programme is a multinational consortium effort among European nations. Even though the programme has a long history, (previously it was known as the Future Large Aircraft, FLA) design activities started in 2003. This programme is TAI’s first “design-to-build” type of international contract. According to the original contract, deliveries were going to start in 2009, but due to some technical difficulties, mainly regarding the engine development, a certain delay became unavoidable. Last year, the authorities of the launching nations met in several meetings to find a solution to the situation. And finally the defence ministers of six nations agreed on the continuation of the programme with some contract amendments.
Currently, two test aircraft are flying and two other aircraft undergo static and fatigue tests. Three additional aircraft will be flying within one year and in the meantime we are getting ready for serial production. This military cargo aircraft is the only of its kind in the world with the capabilities reached today. I firmly believe that, once it is operational, there will be a lot of export sales to several countries.
Part 2 of the interview will be published on Friday, 11 June 2010 at defpro.com.
TAI significantly supports the work on the centre fuselage of the F-35
With a significant increase of sales in 2009 and exports totalling some $175 million, the TAI strengthened its position among giant aerospace and defence companies and underlined its role as a team player for the design and development of defence programmes on a global scale. This is further emphasised by its contributions to the A400M military transport aircraft programme as well as the Joint Strike Fighter (JSF) programme. Furthermore, its R&D capabilities have brought forwards sound technology in the field for indigenously designed, developed and manufactures unmanned aerial vehicles (UAVs).
In light of these achievements, TAI’s CEO and President Mr Muharrem Dortkasli talked to Defence Turkey (DT), a media partner of defpro.com, to assess international activities and strategies as well as the status of ongoing programmes.
Part 2 of the interview will be published on Friday, 11 June 2010 at defpro.com.
DT: TAI has made significant achievements in 2009. Could you evaluate the improvements in the fields of production, investment and R&D activities in figures? What are TAI’s aims for 2010?
Dortkasli: First of all, the performance, not only of TAI but the whole SASAD Community [Turkey’s defence industry manufacturers association – Ed.] was very good in 2009 and this increase will continue for some more years. We at TAI have also accomplished our aims in 2009 in line with our strategies. The result of important measures to further improve the company’s position and performance are manifest in the total sales and export figures. The achievements of 2009, logging sales worth $370 million, reflect an increase of 60% compared to the sales volume recorded in the previous year. The exports reached a total of $175 million in 2009 supporting the stable development of the company. Despite a very challenging environment in 2010, further significant volume growth of over another 60% is expected in total sales, which is primarily due to strong contribution of excellent institutional performance and deliveries.
If we look at the investments, apart from the investments during the years of the establishment, TAI has entered a significant investment scheme during the past couple of years, which started with the A400M programme and continued in connection with the programmes in which we are acting as prime contractor. The investment efforts gained important momentum with the JSF/F-35 programme, in which TAI has become the second source of supply for the centre fuselage. While our investments scored $27 million at the end of 2009, an additional investment of over $100 million is planned to be made in 2010. We are maintaining our investments in technology, capital equipment and the infrastructure to strengthen our competitive position in global markets. With the completion of on-going investments at the Akinci facility, at the end of Q4 in 2010, the total working area under roof will reach approximately 260,000m2. Moreover, by the end of 2010, we are expecting that the employment will reach about 3,600 people, 1,500 of whom will be engineers.
The 2010-2014 period is important for us in the sense that, while the indigenous products and the solutions that are developed by TAI in the fields of trainer & transport aircraft, helicopters, UAVs and the satellites will be part of the Turkish Armed Forces inventory, at the same time we will be seeking strong presence in the global market for these products and services by the method of direct sales or through international cooperation. Therefore, this is going to be a breakthrough period for TAI.
On the other hand, I would like to reiterate our commitment to meet the programme schedules and performances as specific targets for 2010. This includes, but is not limited to the delivery of the fourth and last S70 BlackHawk helicopter under the Yarasa programme, the delivery of the first upgraded T-38 Jet Trainer, successful performance of the first flight of TIHA, test and readiness of the first upgraded C-130 and many others. In line with our stable development efforts, we will continue to pursue the opportunities to become a design and manufacturing partner in new product development projects in the field of world commercial aviation industries.
DT: How do you evaluate the export activities of TAI in 2009? What are your 2010 targets in this area?
Dortkasli: The volume of export of TAI has reached $175 million in 2009. However, it is expected that the exports will significantly increase within a couple of years with the potential sale of our indigenously developed products to allied countries. Also, the commencement of the delivery of JSF/F-35 centre fuselage and other components, the serial production of A400M structures and delivery of the aircraft to the customers will feed the export capacity in the short-term with the following 20 to 25 years life span.
By 2023, we are aiming to have an annual sales volume of $2 billion, half of which is generated through export revenues. It is imperative to present our capabilities and our products in the international market with the Turkish Armed Forces as a valuable reference. Being the leader in the aerospace sector in Turkey, TAI experienced important growth dynamics, leading the company to the prime role in meeting the Turkish Armed Forces’ modernisation requirements with indigenous solutions, in addition to the key partner role for increasing business opportunities in the international aerospace market. The development is based on adding increasing value in the programmes involving intensive engineering and focusing on critical systems solutions. Our indigenous products such as the HÜRKUS trainer, the Turkish Unmanned Aerial Vehicle as well as tailored solutions for the S70 BlackHawk, C-130 and T-38 platforms are among the examples of this challenge. Another key project is the Turkish Attack Helicopter (ATAK) programme, for which TAI is prime contractor. We see great potential for international cooperation as well as exports in connection with these projects.
Last but not least, TAI is actively pursuing new business opportunities in the field of civil/commercial aviation. With the historical record compliance of cost-quality-timely delivery parameters, TAI’s commercial export volume is targeted to be significantly increased before the end of 2010.
DT: What are your marketing and export plans for international platforms? Could you also outline priorities as well as strategies concerning joint production and joint R&D?
Dortkasli: We strongly believe that TAI’s participation in international aerospace projects will increase the value, the overall sales and the export potential for such projects. There are very good examples of our contributions to military and civilian projects such as the A400M, JSF/F-35, A350 XWB and B787. In line with our strategies, we may participate in new international military and commercial aerospace projects in the future as a partner where conditions warrant that a meaningful work share can be allocated to TAI in terms of design and manufacturing. On the other hand, considering the current status of the development and implementation process, TAI will also be open to discuss international partnerships in most of our programmes. While some of the products and integrated solutions of TAI are on the market now, others will be available in full spectrum in a few years. Consequently, it is our aim to become a key player with these products and solutions, together with new derivatives on the global market. At this stage, we are exploring the working models together with allied countries in the early phase as “joint development partner” to adopt and harmonise their requirements with those of the Turkish Armed Forces, which have a well-respected battlefield operational excellence. Moreover, this approach will help those partners to extend their capability base and to secure the lower costs of ownership through the life-cycle operation of such complex systems.
There will be significant export and partnering opportunities for our products such as the TIHA-UAV and the T-129 ATAK helicopter as well as the modernisation programmes in which TAI is playing an important role. However, TAI will closely work together with the Turkish Ministry of National Defence (MoND) and other authorities involved in obtaining necessary approvals and licenses if and when required.
DT: What are TAI’s activities in the modernisation project of F-16 aircraft of the Pakistani Air Forces and the F-16s for the Royal Jordan Air Force (RJAF) and what is the current status of these projetcs?
Dortkasli: Being the second largest F-16 manufacturer in the world (with 250+ deliveries) following Lockheed Martin, TAI has a very good reputation around the world due to its F-16 expertise and quality. Furthermore, completed and ongoing structural/avionics upgrades for Turkish and Jordanian Air Force F-16s make TAI a very capable and competitive company for modification programmes. Our customers are very satisfied with our timely deliveries, flight testing and technical training packages.
Due to these achievements and its quality and competitive pricing, TAI is currently being invited to several F-16 upgrade tenders around the world and, like in the case of Pakistani Air Force, has won the competition. We are very closely following global F-16 upgrade market, and it would not be surprising if we will see more of this type of contract awarding in the future.
DT: TAI is an important supplier for the JSF/F-35 aircraft programme. Could you please inform us about the progress of your activities within this programme?
Dortkasli: TAI is spending every effort in order to maximise the work share within the JSF/F-35 programme. JSF is one of the most challenging military programmes in the world. Becoming a contributor to this programme requires significant efforts. These efforts cover enhancing existing technical capabilities and also require significant investment. This is what we are doing today. We started our activities in the programme in 2005 and they are ramping up every day. On the technical side, TAI has improved its composite manufacturing technology to meet the programme requirements and some of the most sophisticated composite components of the aircraft are now being manufactured at our facilities. The components we manufacture are not only for Turkish aircraft but are used for the production of the global F-35 fleet. We have been delivering miscellaneous parts and components since last year and the delivery rate will continue to increase over the years.
TAI plans to reach 4 to 4.5 billion US Dollars of sales within the scope of the JSF/F-35 programme which will continue through 2034.
DT: Could you please elaborate on the company’s activities in the A400M programme?
Dortkasli: As you know, the A400M programme is a multinational consortium effort among European nations. Even though the programme has a long history, (previously it was known as the Future Large Aircraft, FLA) design activities started in 2003. This programme is TAI’s first “design-to-build” type of international contract. According to the original contract, deliveries were going to start in 2009, but due to some technical difficulties, mainly regarding the engine development, a certain delay became unavoidable. Last year, the authorities of the launching nations met in several meetings to find a solution to the situation. And finally the defence ministers of six nations agreed on the continuation of the programme with some contract amendments.
Currently, two test aircraft are flying and two other aircraft undergo static and fatigue tests. Three additional aircraft will be flying within one year and in the meantime we are getting ready for serial production. This military cargo aircraft is the only of its kind in the world with the capabilities reached today. I firmly believe that, once it is operational, there will be a lot of export sales to several countries.
Part 2 of the interview will be published on Friday, 11 June 2010 at defpro.com.